What Is a Chief Operating Officer? 5 Responsibilities of a COO

A chief operating officer (COO) is a corporate executive in charge of overseeing the operational functions of a business, which might include staffing, administration, and company strategy. A COO, sometimes called the ‘executive vice president of operations or the ‘operations director’, is often the second in the chain of command after the chief executive officer (CEO).

A COO is a member of the ‘C-suite’ which refers to the C-level executives making up a company’s management team, which also includes the CEO, the chief financial officer (CFO), chief information officer (CIO), chief marketing officer (CMO), and the chief technology officer (CTO).

The role of the COO typically depends on the structure of a company, and the person’s relationship to the CEO. Typically, the COO works closely with the CEO to implement a business strategy, along with a number of other day-to-day operations that may be too granular for a CEO to address. Other than being the second-in-command at a company, here are a few tasks that a company’s COO is typically responsible for.

1. 1. Hiring and staffing: A company’s COO oversees all of the HR and staffing functions of a business. They are responsible for setting and maintaining a company’s recruitment standards, and the internal policies of the human resources department. A company’s HR director reports to the company’s COO.
2. 2. Enforcing and implementing a company’s standards: In most cases, the COO is responsible for carrying out the company’s business plan, which is a written document that defines a business’s goals and how it will go about achieving them. They are also responsible for devising a company’s strategy in the wider marketplace.
3. 3. Budgeting and accounts: A COO is responsible for overseeing a company’s financial operations. They are usually responsible for high-level decision-making when it comes to a company’s budget and accounts, with the financial departments of a company reporting to them.
4. 4. Overseeing administrative functions: A company’s COO is responsible for implementing and monitoring the operational function of a business, which includes administrative activities. People who manage office operations may report to a company’s COO.
5. 5. Succeeding the CEO: The COO will also often act as a conduit of information between the CEO and the rest of the company. They are also the second-in-command at a company, meaning that they will succeed a company’s CEO if they aren’t able to fulfill their responsibilities.

COOs are typically the second-in-command at the company where they work, meaning that their work is highly skilled and specialized. People who come from a plethora of different career paths may end up becoming COOs. Here are four general qualifications that anyone applying for a COO position should have.

1. 1. Education: COOs may have some kind of specialized business degree, but most companies will require their COOS to have (at least) a bachelor’s degree from a four-year university.
2. 2. Leadership skills: COOs are responsible for overseeing multiple departments, including office management, HR, and finance. Hopeful COOs should be capable and experienced leaders who can guide people of different backgrounds and skillsets. It is preferable that a COO have a breadth of management experience to show that they are proven leaders.
3. 3. Vision: COOs are responsible for making high-level decisions that keep a company competitive and successful in the marketplace. As a COO, a person should make and carry out decisions that will benefit the company, based on their experience, acumen, and experience in the field.
4. 4. Communication skills: A company’s COO is responsible for streamlining communication between numerous department heads, and most importantly a company’s CEO. It’s imperative that a person in this role is a clear and efficient communicator because they’re often the person communicating developments to the person in charge.

The main difference between a CEO and a COO is their ranking within the company. The COO reports to the CEO, the highest-ranking member of the organization. The CEO is also considered the head of the company and will have the final say in the direction of the business. Though COOs have tremendous authority to make their own decisions on matters within their purview, the CEO will still be able to change or even veto their recommendations.

Some companies will not have or necessarily need a chief operations officer. In startups and small business administration, the CEO will usually perform the functions of COO as well, which will help them stay close to the daily operations as their company grows.

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